China to expand budget investment to boost economic growth: NDRC


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Investment projects worth 200 billion yuan ($28.35 billion) that are in next year's plans will be released in advance this year to support local governments in accelerating the preliminary work and construction, said Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC).

The remarks were made at a press conference held by the State Council Information Office on Tuesday, during which NDRC officials introduced a package of incremental pro-growth policies, reflecting the government's resolve to fire up the economy, which is under downward pressure.

There are a wide range of key areas that will be the focus of investment. Investment within the central budget will continue to support basic, public welfare, and long-term projects, and accelerate addressing gaps in China's modernization drive, said Liu Sushe, vice-chairman of the NDRC.

In terms of consumption, the focus will go to increasing the incomes of middle- and low-income groups, implementing plans to boost domestic consumption, and expanding the consumption of services such as elderly care.

China has steadily ramped up efforts to boost its economy, backed up with a significant amount of investment already in place since the beginning of this year.

China's central government has allocated 700 billion yuan from its budget for project investment in "national major strategies and capacity-building for security in key areas," according to Zheng, chairman of the NDRC.

Also, 1 trillion yuan worth of ultra-long special treasury bonds has been fully allocated to projects and local governments. 

The efforts by the NDRC show that the Chinese government is ramping up the implementation of incremental policies to stimulate domestic demand through fiscal measures, aiming to invigorate the economy, Pan Helin, a veteran economist, told the Global Times on Tuesday. Pan noted that the move is expected to boost consumer confidence in the short term.

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